Be Free, Inc. Announces $17.6 Million Financing Agreement.

WALTHAM, MA--(BUSINESS WIRE)--Oct. 5, 1998--

Names Hoffstein CEO, Makes Additional Senior Executive

Appointments

Be Free, Inc., the leading provider of affiliate network management services to online retailers, has announced a $17.6 million financing agreement with Matrix Partners, Charles River Ventures and Comdisco Ventures.

Be Free, Inc. will use the new resources to fund a major expansion effort intended to put the company at the forefront of e-commerce affiliate marketing technology. Specific initiatives include expanding Be Free's sales and marketing efforts, enhancing its client services and increasing investment in development and technology.

Be Free also announced that Gordon B. Hoffstein has joined the company as president and chief executive officer. Hoffstein was a co-founder, chairman and chief executive officer of PCs Compleat, Inc., the nation's first direct reseller of brand name personal computer products. Prior to founding PCs Compleat, Hoffstein started MicroAmerica, Inc., a leading microcomputer distributor. The company merged with Softsel to form Merisel, Inc., which today is one of the largest microcomputer distributors in the U.S.

Additional senior executive appointments announced today include founders Samuel and Tom Gerace, who will be executive vice presidents of technology and business development, respectively.

"With our additional financing and increased management depth, Be Free is building the infrastructure to achieve a leadership position in affiliate network marketing," said Tom Gerace. He continued, "While at PCs Compleat, Gordon Hoffstein revolutionized the way personal computer products were bought and sold. With Be Free's technological expertise and Hoffstein's experience, we intend to revolutionize the way products are bought and sold over the Web."

Hoffstein said, "Be Free is changing the way online marketers reach their customers. Its technology allows retailers to set up literally tens of thousands of satellite sites through affiliate networks and automates the entire process for maximum efficiency, accuracy and profitability. The company now has the management team and financial resources to support a rapidly expanding customer base while continuing to enhance its service offerings."

The following additional senior executive appointments were announced. Stephen Joseph, who formerly served as chief financial officer at PCs Compleat, Inc., has joined Be Free in the same capacity. Joseph Lorenc, formerly vice president of sales at PCs Compleat, Inc., and CompUSA Direct, has joined the company as vice president of client services. Mike Humphreys of Matrix Partners and Ted Dintersmith of Charles River Ventures will join Be Free's board of directors.

"We are delighted to play a role in Be Free's expansion as a major player in online affiliate selling," said Humphreys and Dintersmith. "This innovative company is poised for dramatic growth and will make a strong contribution to the future of e-commerce."

The following analysts have expressed a willingness to comment on Be Free:

- Melissa Bane of Yankee Group - Kenneth Cassar of Jupiter Communications - James McQuivey and Shonta Puhtler of Forrester Research - Roy Satterthwaite of Gartner Group

Be Free, Inc. is a service provider to online retailers. The company specializes in marketing information services, including its BFAST(tm)affiliate management and BFIT(tm) technology for targeted advertising delivery. Both BFAST and BFIT are available through the Be Free service bureau.